Source: AFP
Netflix subscription numbers grew by more than 13 million in the final three months of last year, the company said Tuesday, despite price hikes at the top streaming service.
Netflix ended 2023 with just over 260 million subscribers worldwide, with $938 million in revenue in the latest quarter compared to just $55 million in the same period a year earlier.
“We believe there is plenty of room for growth ahead as streaming expands,” the US company said in an earnings letter.
Netflix shares rose nearly 7 percent to $526.50 in after-market trading following the earnings release.
The streaming giant said that despite last year’s Hollywood actor and writer strikes, the company has a “big, bold” slate of content to release this year.
The company touted upcoming content, including a sequel to South Korea’s hit Squid Game series and an all-new show “Body Problem” based on the bestselling Game of Thrones novel.
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“Choice and control is the price of entry into modern entertainment, and that’s streaming,” Netflix said in the letter.
“It’s what consumers want and we believe it’s the best way for our industry to stay relevant and grow.”
News of the earnings came on the same day that Netflix signed a long-term broadcast deal with the WWE pro wrestling juggernaut as it pushes further into sporting events.
Launching in the US in 2025, Netflix will become the exclusive new home of “Raw,” WWE’s flagship television program since 1993.
The deal will also see WWE broadcasts and live events streamed around the world as their rights become available.
With an initial 10-year term for $5 billion, the deal has an option for Netflix to extend the deal for an additional 10 years or opt out after the first five years.
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‘Very competitive’
“We expect our industry to remain highly competitive,” Netflix said, citing heavy investment from rivals such as Amazon, Apple and YouTube.
“That’s why it’s so important that we continue to improve our entertainment offering.”
Netflix late last year raised the price of its basic plan in the United States to $11.99 a month and its premium plan to $22.99, with similar price “adjustments” in Britain and France.
After a period of unfavorable earnings, earlier in 2022, the Silicon Valley giant expanded its crackdown on users who share passwords with people beyond their family.
In a separate bid for revenue, Netflix launched an ad-subsidized offering around the same time as the crackdown and later scrapped its lowest-priced ad-free plan.
The ad-supported tier, launched late last year, costs $7, though Netflix said it was not yet the main driver of overall revenue.
As ads gain momentum, the company said on Tuesday it will retire the lower cost ad-free service, starting in Canada and the UK in the second quarter of this year.
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The company said earlier this month that it has 23 million subscribers using its ad-supported tier, which accounts for 40% of new signups.
Netflix’s profit contrasts with other streamers, such as Disney Plus or Amazon Prime, which have drastically cut costs.
Source: AFP